Global Economics For Managers

Description: Deliver a report evaluating whether anEVbattery manufacturer should establish a gigafactory ina developing country of their choice, usingmacroeconomic indicators, trade theories, and Balanceof Payments analysis to provide a clear recommendation.

Case Study Scenario:A multinational corporation (MNC) specialising in electricvehicle (EV) batteries and energystorage systems isevaluating the construction of a gigafactory in a developing or emerging economy. This facility would produce keycomponents such as battery cells, battery modules, or batterymanagement systems to meet the growing demand forEVs worldwide.

Task Summary:In this task, you will prepare a report assessing whether the MNC should establish this gigafactory in a developingcountry of your choice. You may choose any developing or emerging economy you judge suitable for this type ofinvestment (examples: Indonesia, Vietnam, India, Mexico, Morocco, South Africa, Thailand, Brazil, etc.).Your report must provide a strategic, datadriven, and evidencebased evaluation of the feasibility of entering theselected country.Structure:The report should follow the structure below:

1. Title page

  • Assignment title
  • Course name and code (MADSC101)
  • Student name
  • Submission date
  • 2. Executive summary (150200 words)Concise overview of the country choice, core findings, key risks/opportunities, and the final recommendation.

    3. Table of contentsList all headings and subheadings with page numbers.

    4. Introduction (150200 words)

  • Brief overview of the MNC (EV batteries/energy storage).
  • Introduce the chosen country.
  • State the reports purpose and scope.
  • 5. Macroeconomic indicators (400450 words) GDP level and growth trends; nationalincome characteristics. Structure of exports and imports; trade partners.

  • Labourmarket conditions (skills/availability/wages).
  • Winners and losers from globalisation in this context.
  • Key macro risks for foreign investors (inflation, political stability, regulatory environment).
  • Include at least one chart or table (with source).6.
  • 6. International trade theories (400450 words)

  • Comparative Advantage: Assess minerals (lithium, cobalt, nickel), manufacturing capacity,logistics/shipping, access to major EV markets.
  • Factor Endowment Theory (HeckscherOhlin): Labour abundance, natural resources, capital
  • availability, technological readiness, renewableenergy potential. Trade & industrial policy context: Tariffs/quotas; FDI policies and incentives;

    renewableenergy/industrial policies; localcontent rules; relevant FTAs.

  • Use theory to justify produce incountry vs. outsource decisions.
  • 7. Balance of Payments & external sector (300350 words)

  • Current Account position; FDI inflows; exchangerate stability; external debt pressures;repatriationofprofits rules.
  • Sustainability of trade deficits; savingsinvestment patterns.
  • Explain how these shape financing, profitability, FX risk, and global supplychain integration.
  • 8. Recommendations (150200 words)

    Clear, actionable entry recommendation (proceed/defer/do not proceed) and critical success factors (e.g.,

    incentives needed, localcontent strategy, supplychain setup, riskhedging).

    9. Conclusion (100150 words)

    Reinforce the feasibility judgment and the main reasons.

    10. References

    Harvard style; cite all data and sources used.

    11. Appendices (optional)

  • Data tables, charts, calculation notes, policy excerpts.
  • Supplychain maps, risk matrices, scenario tables.
  • Requirements: 2000 words +- 10%

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